Looking to buy the dip🤑?
See today’s worst-performing stocks in the S&P 500 with our daily screener. Today’s underperformers are $EA, $RCL, $ETSY, $MTCH, $NCLH, $TTWO, $CCL, and $UAA.

Visit this screener for more data on these stocks!

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Buying the dip blindly can sometimes equate to catching a falling knife - what makes the difference is thoroughly researching the companies that form the largest drops and understanding their fundamentals
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Gaming Industry Has Strong Secular Tailwinds:
Microsoft $MSFT wants to acquire Activision Blizzard $ATVI for $95.00 per share (currently trading at $76.83), in an all-cash transaction valued at $68.7 billion. Microsoft will become the world’s third-largest gaming company by revenue, behind Tencent and Sony. It seems like Microsoft knows there is going to be continued growth in gaming for years to come. Who do you think are the biggest beneficiaries of this secular tailwinds?

Gaming companies such as: Take-Two Interactive $TTWO, Electronic Arts $EA, Sea Limited $SE

Platforms letting creators create their own games? Meta $META, Roblox $RBLX

Hardware providers such as: NVIDIA $NVDA, Advanced Micro Devices $AMD
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Looks like gaming is the fastest growing form of entertainment, according to AMD at their Analyst Day.
Huge opportunities ahead for hardware providers like $AMD & $NVDA and game developers like $MSFT, $ATVI, $EA, $RBLX, $TTWO, etc.
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Fairly excited over here about how tokenomics can create viable business models for indie gamers. The abbreviated idea is that you can have a free-to-play game with an economy of in-game items that are NFTs. Every time the NFT changes owners in the game there is a small transaction fee that goes to the game treasury and gets paid out to the developers.

This could be a sustainable way for game developers to create awesome games, as opposed to either going with the advertising model, or needing to charge a lot up front to buy the game.

The main thing that needs to happen for this to be possible is for blockchains to to scale, which could be on the horizon with the rise of layer 2s.
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A Weekly Update on Special Situations
Covetrus $CVET received $21 / share proposal from CD&R and TPG to acquire remaining outstanding shares.

Griffon $GFF initiated review of strategic alternatives.

Kohl’s $KSS said final bids will be submitted in the coming weeks; skepticism regarding a deal is growing amid poor financial results.

Spirit $SAVE bidder JetBlue $JBLU announced a $30 / share hostile tender offer.

Electronic Arts $EA rumored to have had takeover discussions with Amazon $AMZN, Disney $DIS, Apple $AAPL; held discussions with Comcast $CMCSA regarding merger with NBC Universal.

Hemisphere Media Group $HMTV shareholder Edenbrook Capital sent letter to the board expressing displeasure with sale price.

MiMedx Group $MDXG released a presentation in response to activists, highlighting its standalone value creation plan.

Republic First Bancorp $FRBK chairman Hill removed from role, filed lawsuit against company.

Turtle Beach $HEAR entered into cooperation agreement with Donerail Group.
Your newsletter and compiling all this stuff to share is always incredible! Thank you for the work you’re doing
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Upcoming Earnings Calendar (Jan 31st- Feb 4th)
Hey guys!

Here's the earnings calendar for next week! Here's what I'm interested in:

  • $XOM - Insights on the global oil market.
  • $GOOG - Strength of the digital ad market + growth of YouTube (since $NFLX slowed down).
  • $FB - Comments on their strategy to monetize Whatsapp (I don't expect any, but one can hope).
  • $SPOT - They recently expanded to other markets, so maybe they can maintain accelerated growth, unlike Netflix.
  • $AMZN - AWS and Advertising segment growth + impact of the increase in 3P fees.

What are you looking forward to next week?

If you'd like an easier way to track earnings dates, you can automatically sync your portfolio's earning dates to your personal calendar with just a couple of clicks here.

MON:


TUE:


WED:


THU:


FRI:
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Logitech Sees Continued Momentum in Gaming
During Logitech's Q3 2022 earnings call $LOGI, management highlighted twice the strength they're seeing for gaming peripherals. Gaming was one of the biggest beneficiaries of COVID-19, and it appears the momentum has continued.

  • "We continued our strong momentum in gaming even after having exceptional revenue growth last year. We've been telling you that gaming is no longer a fringe hobby for a small group of customers for a long time. According to New Zoo, there are now 3 billion gamers worldwide. And whether you game for fun or competitively, our peripherals improve your experience."
  • "Gaming grew 8% off of our 73% growth last year. And with better supply and gaming wheels, the category would have grown double digits this quarter."

Stocks like $ATVI $MSFT $TTWO $EA $U $RBLX $SONY will likely be beneficiaries of continued gaming momentum this year.
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